Q2 2024 Perrigo Company PLC Earnings Call Transcript
Key Points
- Perrigo Co PLC (PRGO) has made significant progress in strengthening its infant formula business, with production volumes returning to prior year levels.
- The company has executed key cost savings and efficiency initiatives, including Project Energize, which achieved $53 million in gross savings in the first half of the year.
- Perrigo Co PLC (PRGO) has seen meaningful margin improvement, with gross and operating margins expanding 190 and 160 basis points year-over-year, respectively.
- The company's global branded portfolio continues to perform well, with strong growth in key brands such as Compeed, ellaOne, and Paranix.
- Perrigo Co PLC (PRGO) remains confident in its ability to deliver on its full year EPS outlook, reaffirming its adjusted earnings per share outlook of $2.50 to $2.65.
- Organic net sales declined 9.1% in the second quarter, impacted by a 7 percentage point decline from infant formula and a 4 percentage point decline from lower sales in the upper respiratory and pain and sleep aid categories.
- The company faced challenges in the infant formula regulatory environment in the US, impacting organic net sales by 5.3 percentage points and earnings per share by $0.43 versus the prior year.
- Perrigo Co PLC (PRGO) experienced lower seasonal demand and net changes in inventory levels at US retail customers, leading to a 2.5 percentage point unfavorable impact on its 2024 net sales outlook.
- The company tactically walked away from a portion of its US store brand business that was becoming too dilutive to margins, resulting in a 1.5 percentage point headwind to its 2024 net sales outlook.
- Organic net sales in the CSCA segment declined 15%, driven by a 10.8 percentage point decline from infant formula and a 4.4 percentage point decline from the upper respiratory and pain and sleep aid categories.
Good morning, ladies and gentlemen, and welcome to the Perrigo Second Quarter 2024 Financial Results Conference Call. (Operator Instructions) This call is being recorded on Friday, August 2, 2024.
I would now like to turn the conference over to Bradley Joseph, Vice President of Global Investor Relations. Please go ahead.
Good morning and good afternoon, everyone. Welcome to Perrigo's Second Quarter 2024 Earnings Conference Call. I hope you all had a chance to review our press release issued today. A copy of the release and presentation for today's discussion are available within the Investors section of the perrigo.com website. Joining today's call are President and CEO, Patrick Lockwood-Taylor; and CFO, Eduardo Bezerra.
I would like to remind everyone that during this call, participants will make certain forward-looking statements. Please refer to the important information for shareholders and investors and safe harbor language regarding these statements in our
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